BUSINESS & ECONOMY

Bitatnagar Jute Mills still tense

By a staff reporter

As the talks to resume works ended inconclusive, one of the oldest factory in the country, the Biratnagar Jute Mills, remained tense like it has since the past few weeks. The tension that mounted at the Mills area was soon transmitted to the ongoing session of the House, when police personnel fired against the factory workers on Saturday.

As the striking labourer of the Mills tried to block the strategic Indo-Nepal border at Jogbani to press for their demands, police personnel fired 14 cells of tear gas, five rounds of gas grenade and four rounds of blank fire to disperse the agitated workers to take the situation under control. But, the lawmakers of the main opposition party CPN-UML stalled the House proceedings at the parliament protesting against the police action against labourers.

Bharat Mohan Adhikari, chief whip of CPN-UML said that the workers at the Jute Mills were taken into custody by the police from the past one month and that many factory workers were injured by the police firing and lathicharge.

The UML chief whip also demanded the government to release the workers immediately and fulfill their demands.

The workers at Biratnagar Jute Mills have been on strike from the past one month. They have been demanding for the opening of the mills soon. The mill was closed for the last many months without any cause. However, the owner of the mill had agreed on resuming the works from May 28.

The workers of the Mills initiated the recent agitation after the owner of the mill did not fulfill the promise to resume operation from May 28. They had also submitted a 19-point demand to the Mills’ Management and the government before resorting to the agitation.

Meanwhile, lawmakers at the Parliament accused the government of turning a deaf ear to the demands put forth by the workers at the country’s biggest Jute mill. MPs said that the government is not paying attention to the long persisting problems of the workers at the mills.

When the country’s eastern industrial hub has been badly hit by the striking workers, many critics believe that the government as well as the Mills’ Management shall consider the problem seriously and take immediate measure to solve the problem. They also warn the government that the present agitation may soon transfer to other parts of the country, if immediate solution was not reached.

Though Minister of Industry Ram Krishna Tamrakar had informed the House about the ongoing dialogue between the Mills’ Management and the representatives of the workers to find an amicable solution on Sunday, they have not been able to reach at agreements. According to news reports, the eastern city still remained tense even until Monday evening.

Inappropriate tax system hampers carpet export

By a staff reporter

Carpet manufacturer and exporters have sharply criticized the government for inappropriate tax on the export of carpet. They accused the government of deterioration of carpet industry and warn that the export situation will further worsen if immediate measures are not taken on time.

This was said at an interaction programme on "Income Tax on Earning from Export" organized by Nepal Carpet Exporters’ Association (NECA) last week. Carpet manufacturer and exporters have also said that the export figure of carpet has declined almost by 50 percent in comparison to the total volume till October-December 1999.

Carpet entrepreneurs warn of further decline in the export of carpet because of inappropriate tax system.

Levying tax against the Export Policy - 2049 BS is totally irresponsible act of the government and it has created confusion among exporters. Prominent carpet exporters of the country have also said that inefficient tax administration, lack of transparency, monopoly of tax authorities and frequent change of government policies have marred the country’s top foreign currency earning industry.

The government’s decision of imposing 0.5 percent tax as service charge and an additional charge of 40 percent as income tax and further five percent tax on dividend is not justifiable, said A. G. Sherpa, President of Central Carpet Industry Association (CCIA). Sherpa also urged the government to consider the present situation carefully.

The government’s decision has brought confusion among exporters and manufacturers, said Bijay Bahadur Shrestha, prominent carpet manufacturer and exporter. "The decision of imposing income tax announced in the budget speech last month has discouraged manufacturers," Shrestha opined.

President of NECA K. N. Thakur pointed out the need to promote carpet export and strengthening of the carpet industry. He blamed the government for creating confusion among carpet exporters and manufacturers and urged all entrepreneurs to be united to press the government.

The programme was participated in by almost one hundred carpet exporters and manufacturers. All the participants agreed to join hands to promote the carpet industry. They also stressed on the need of export oriented policy for the institutioalization of export oriented industries in the country.

Melamchi could yet come gushing in

By a staff reporter

The Melamchi Water Supply Project (MWSP) may see the light at the end of the tunnel after a Memorandum of Understanding is signed today (Wednesday) between the government and the Asian Development Bank (ADB). The ADB is the coordinator among the donors.

A 3-member ADB team, dubbed as the loan fact-finding mission is currently in Kathmandu to inspect the different aspect of the project. A meeting of the donor agencies will also take place in the later part of the month. The meeting is expected to give a go ahead signal for the implementation of the project. The MoU will open the door for the loan process to the project.

The Melamchi Project, seen as the most viable and long-term alternative to Kathmandu’s water shortage, looked to take off after the government recently agreed to take out the hydro-power component from the project. The component had been the bone of contention among the donor agencies, mainly ADB, which wanted the project to be only water supply, and Norad, the Norwegian development fund, which wanted the hydro-power component of 5-25 MW to be included. In the last meeting in February, the ADB had rejected its participation in the project if the hydro-power component was included.

With the drop of the power plant the cost of the project will also come down significantly from the earlier US$ 400 million to US$ 340 million.

Among the donors ADB will fund the project’s bulk distribution network. Norad has already committed a grant of US$ 24 million for tunnelling and SIDA, the Swiss International Development Agency, has also agreed provide US$ 15 million.

Another donor Japanese Bank for International Cooperation has also assured a loan of US$ 55 million for the treatment plant, and the World Bank is positive to provide US$ 15 million loan for the rehabiliation of the distribution network. The government will provide about US$ 71 million or about 20 per cent for the project. The government has already spent about Rs. 60 million for the construction of the access road to Melamchi.

Under the project water from Melamchi and two other rivers Larke and Yangre will be piped through a 28 kilometre tunnel to the Kathmandu valley. The volume of supply will be 170 mld ( million litres a day) initially and after the completion of the project it will be 540 mld alleviating the problem of water shortage for several years to come. Currently Kathmandu needs 160 to 170 mld of water and only 80 mld of water has been supplied.